District of New Jersey
Press releases recorded for this federal judicial district.
Former Executive Director of Jersey City Child Development Centers Gets 18 Months in Prison for Stealing More Than $250,000Read the Press Release
NEWARK, N.J. - A Jersey City, New Jersey, man was sentenced today to 18 months in prison for stealing more than $250,000 from the Jersey City Child Development Centers Inc. (JCCDC), an organization that provided early childhood development services and education to under-privileged children, Acting U.S. Attorney William E. Fitzpatrick announced.
Robert E. Mays, 40, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Mays was the executive director of JCCDC from Sept. 2013 to May 2014. Mays admitted that he stole more than $250,000 from JCCDC by unilaterally increasing his annual salary from $96,500 to $155,000 after being employed by JCCDC for only two months. He also admitted that he created false board of director’s minutes to give the impression JCCDC authorized the salary increase.
In addition, Mays admitted he withdrew funds from a JCCDC bank account to pay for unauthorized personal expenses, including a 2007 Maserati Quattroporte and a fur coat worth thousands of dollars.
In addition to the prison term, Judge Wigenton sentenced Mays to three years of supervised release and ordered him to pay restitution of $257,418.20.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division and Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Alexander W. Booth Jr., Union City, New Jersey
Union County, New Jersey, Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man has been arrested and charged in connection with a bank robbery in Bergen County in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced today.
Israel Cosme, 36, of Elizabeth, New Jersey, is charged by complaint with one count of bank robbery. He was originally arrested Jan. 24, 2017 in connection with two bank robberies he allegedly committed in Maryland. He appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Jan. 15, 2017, Cosme allegedly robbed a TD Bank in Little Ferry, New Jersey. According to bank employees and video surveillance, a man wearing blue jeans, tan work boots, a gray hooded sweatshirt, and a knit cap entered the bank. The robber approached one of the bank tellers and handed her a note demanding money. The robber then told the bank teller that he was carrying a weapon in his pocket and that he would shoot her if she did not comply with his demands. He then reached over the counter, grabbed the teller by the shirt, and forcibly grabbed money out of her hand. The robber was later identified as Cosme.
When law enforcement apprehended Cosme outside of a hotel room in Maryland and searched his hotel room pursuant to a search warrant, they recovered a pair of blue jeans and a gray hooded sweatshirt that resembled the clothing he was wearing during the robbery.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the Little Ferry Police Department, under the direction of Chief Ralph Verdi, for its assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Short Hills, New Jersey, Investment Manager Sentenced to 33 Months in Prison for $675,000 Ponzi SchemeRead the Press Release
NEWARK, N.J. – An investment manager with an office in Short Hills, New Jersey, was sentenced today to 33 months in prison for that he fraudulently inducing investments, concealing investment losses, and diverting more than $675,000 in investor money for his own use, Acting U.S. Attorney William E. Fitzpatrick announced.
Mark Moskowitz, 48, of Short Hills, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of wire fraud. Judge Hayden imposed the sentence today in Newark federal court.
In a separate legal proceeding, the N.J. Bureau of Securities ordered Moskowitz and his trading company, Edge Trading LLC, to pay a $1 million civil penalty for selling unregistered fraudulent securities and misusing investors’ funds for personal expenses.
According to documents filed in this case and statements made in court:
Moskowitz controlled an investment fund under the names Edge Trading Partners L.P. and Edge Trading LLC (Edge Trading). In addition to touting his investment skill and experience, Moskowitz concealed losses from investors and falsely told them that Edge Trading was growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Moskowitz and left previous investments under his control.
Edge Trading was an investment fund that Moskowitz created and operated, starting in or around 2012. Moskowitz told investors that Edge Trading was invested in U.S. and foreign equities, futures contracts, and option contracts and that the fund’s investments continued to show positive returns. In reality, Moskowitz redirected investor money to his personal use, which he concealed from the investors.
In addition to the prison term, Judge Hayden sentenced Moskowitz to three years of supervised release and ordered restitution and forfeiture of $694,577.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencing. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Christopher S. Porrino and Acting Bureau Chief Amy Kopleton, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defenders, Newark
Monmouth County Man Charged with Robbing Investors BankRead the Press Release
TRENTON, N.J. – A Monmouth Beach, New Jersey, man will appear in federal court today to face allegations that he robbed an Investors Bank in Navesink, New Jersey, on July 20, 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
Martin Racioppi, 52, is charged by complaint with one count of bank robbery. He is expected to appear this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
According to the complaint, Racioppi entered an Investors Bank on July 20, 2017, verbally demanded money from a teller, and fled after the teller gave him cash. Racioppi was arrested a day later in Eatontown, New Jersey, on July 21, 2017.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Racioppi has two prior bank robbery convictions, including a federal conviction in 2007.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Enterprise Task Force (to include representatives from Bradley Beach Police Department, Brick Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, and Toms River Police Department), under the direction of Special Agent in Charge Timothy Gallagher; the Middletown Township Police Department, under the direction of Chief Craig Weber; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Monmouth Beach Police Department, under the direction of Chief Thomas C. Walsh; the Atlantic Highlands Police Department, under the direction of Chief Jerry Vasto; and the Eatontown Police Department, under the direction of Chief Michael D. Goldfarb; with the investigation leading to Racioppi’s arrest.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis, Attorney-in-Charge of the U.S. Attorney’s Office Trenton Branch.
The charge and allegations contained in the complaint are merely accusations, and Racioppi is considered innocent unless and until proven guilty.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Indiana Man Admits Role in Dark Net Weapons Trafficking SchemeRead the Press Release
TRENTON, N.J. - An Indiana man today admitted transporting weapons to New Jersey in connection with illegal firearms trafficking and sales activity he conducted on an underground, internet based marketplace known as Alphabay, Acting U.S. Attorney William E. Fitzpatrick announced.
Benjamin Donald Brunni, 19, of Greensburg, Indiana, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him one count of transporting and selling firearms without a license.
Co-defendant Nicholas Michael Albertson, 20, of Columbus, Indiana, pleaded guilty to the same offense on July 14, 2017. The arrests of Brunni and Albertson stemmed from a larger law enforcement operation initiated by the U.S. Department of Homeland Security that targeted illegal activities conducted through the dark net since 2013.
“This case highlights the danger posed by dark net marketplaces that offer one-stop anonymous shopping for criminal services,” Acting U.S. Attorney Fitzpatrick said. “A brief series of online communications was all it took to negotiate an $7,550 illicit firearms purchase and send Brunni and Albertson from Indiana to New Jersey to deliver an arsenal of assault rifles and untraceable handguns. Thankfully, a sophisticated undercover operation intercepted the guns and put these two out of business.”
“This guilty plea serves as a stern warning about the consequences awaiting arms traffickers who think the dark net is a safe haven to conduct illegal activities,” said Debra Parker, Acting Special Agent in Charge of Department of Homeland Security, Homeland Security Investigations (HSI) in Newark. “HSI will continue to work with its law enforcement partners to hold criminals who use anonymous internet software for illegal activities accountable for their actions.”
According to documents filed in this case and statements made in court:
Beginning in April 2013, HSI special agents conducted an undercover investigation of illicit sales activity on various dark net internet platforms. During the course of the investigation, Alphabay was identified as a website that provided a platform for vendors and buyers to conduct anonymous online transactions involving the sale of a variety of illegal goods, including firearms, ammunition, explosives, narcotics, and counterfeit items.
Unlike mainstream e-commerce websites, Alphabay was only accessible via the “Tor” network, which enabled its users to conceal their identities and physical locations. Although Tor has known legitimate uses, it is also used by cybercriminals seeking anonymity during illicit online activities.
During the course of the investigation, HSI agents learned that Brunni maintained a profile on Alphabay in which he expressed interest in the sale and purchase of firearms and ammunition. For approximately one month, Brunni negotiated with an undercover officer, whom he believed was an international purchaser of firearms, for the sale of numerous semi-automatic handguns and rifles.
Ultimately, Brunni agreed to sell 10 firearms to the undercover officer, including eight Glock-model semi-automatic handguns with obliterated serial numbers and two semi-automatic rifles for $7,550. Brunni also agreed to transport the weapons from his home in Indiana to New Jersey to complete the transaction.
On Sept. 9, 2016, Brunni and Albertson traveled to the meeting spot at a truck stop in Phillipsburg, New Jersey, and were subsequently arrested. Law enforcement agents recovered a loaded Smith & Wesson Model 5906 S-A Pistol in the vicinity of the Mercedes driver’s seat, as well as three Glock Model 22 Pistols, one Glock Model 17 Gen 4 Pistol, one Glock Model 20 Pistol, one Glock Model 26 Gen 4 Pistol, one Glock Model 30 Pistol, one Glock Model 34 Pistol, one Rugar AR-556 assault rifle, and one Anderson Mfg. AM-15 assault rifle. The serial numbers from each of the Glock handguns were obliterated and unrecognizable.
The unlicensed sale and weapons transportation charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for Brunni and Albertson is scheduled for Nov. 28, 2017 and Nov. 13, 2017, respectively.
U.S. Attorney Fitzpatrick credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Debra Parker in Newark, Homeland Security Investigations Indianapolis, under the direction of Special Agent in Charge Resident Agent in Charge Gary Woolf, officers of the N.J. State Police under the direction of Col. Joseph R. Fuentes, and officers of the Greenfield Police Department, Indiana, under the direction of Chief Jeff Rasche, with the investigation.
The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney's Office's National Security Unit in Newark.
Defense Counsel:
Brunni: Brian J. Neary Esq., Hackensack, New Jersey
Albertson: Assistant Federal Public Defender Carol Gillen Esq., NewarkHudson County, New Jersey, Man Sentenced to 63 Months in Prison for Masterminding Fake ID Website and Participating in ‘SIRF’ SchemeRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to 63 months in prison for his role in two separate conspiracies: one to create and operate a website that sold high-quality, custom-made fake identification documents, some of which were later used to commit financial crimes, and a second to fraudulently obtain tax refund checks, Acting U.S. Attorney William E. Fitzpatrick announced.
Ricardo Rosario, 34, previously pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with conspiracy to commit fraud in connection with authentication features and conspiracy to submit false claims to the U.S. Government. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2012 through August 2014, Rosario, with the assistance of Abraham Corcino, 34, of Jersey City, and Alexis Scott Carthens, 38, of Newark, sold fake driver’s licenses over the Internet, running a website that was available at “fakeidstore.com” and “fakedlstore.com.” A number of the fake driver’s licenses sold by Rosario and other conspirators were used in connection with “cash out” schemes, where stolen credit card information, usually obtained through hacking or ATM skimming operations, was encoded on to counterfeit credit cards and used to steal cash from victims’ accounts.
Rosario created and ran the website. Corcino and Carthens assisted him by creating and mailing the fake driver’s licenses purchased through the website. Corcino also maintained an Instagram account to promote the website. The website sold fake New Jersey, Florida, Illinois, Pennsylvania, Rhode Island, and Wisconsin driver’s licenses, and the website boasted that the licenses had “scannable barcodes” and “real” holographic overlays. The price for each fake driver’s license was approximately $150, but the website offered bulk pricing for orders of 10 or more.
The website allowed its users to pay by bitcoin, a cryptographic-based digital currency, or MoneyPak, a type of prepaid payment card that could be purchased at retail stores. The “FAQ” section of the website indicated that orders would be received approximately one to two days after payment was received and described the website’s policy with respect to returns: “No Refunds. No snitching.”
In the Stolen Identity Refund Fraud (SIRF) conspiracy, Rosario assisted Carthens, who obtained stolen personally identifiable information (PII) primarily in the form of lab testing request forms that he purchased from another individual. Rosario provided Carthens with email accounts and drop addresses used in furtherance of the scheme. The email accounts were used to register accounts for online tax filing services and prepaid card accounts used to apply for and receive the tax refunds. The drop addresses were used to physically receive the refunds in the form of prepaid debit cards.
In addition to the prison term, Judge Linares sentenced Rosario to three years of supervised release and ordered forfeiture of $232,660 and restitution of $121,922.
Corcino was sentenced on April 17, 2017, to three years of probation. Carthens pleaded guilty to his role in the scheme on April 25, 2016, and is scheduled to be sentenced Sept. 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Zach Intrater of the Economic Crimes Unit and Barbara Ward, Acting Chief of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Brian Neary Esq., Hackensack, New Jersey
Essex County, New Jersey, Man Sentenced to 45 Months in Prison for Bank RobberyRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 45 months in prison for robbing a Valley National bank in Belleville, New Jersey, in April 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Donald Myer, 60, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of bank robbery. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Myer admitted that during the robbery, he passed a note to a bank employee in which demanded money and threatened that he would use a gun.
In addition to the prison term, Judge Linares sentenced Myer to three years of supervised release and ordered him to pay $1,000 in restitution.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Belleville, Kearny, and Port Authority police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.
Two More Members of ATM Skimming Conspiracy Plead Guilty to Scheme Targeting Multiple New Jersey Bank LocationsRead the Press Release
Two members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty to conspiracy to commit bank fraud today in federal court.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey and Acting Special Agent in Charge Debra Parker of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Newark Division made the announcement.
Stefan Dumitru, 29, of Queens, New York, and Florian Calin Crainic, 47, of Des Plaines, Illinois, pleaded guilty before U.S. District Judge Esther Salas to separate criminal informations charging them each with one count of conspiracy to commit bank fraud.
According to admissions made in court in connection with their guilty pleas, Dumitru, Crainic, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Dumitru and Crainic both admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
Sentencing for both defendants is set for November 6.
Joel Abel Garcia, Victor A. Hanganu, Radu Bogdan Marin, Marcel Peckham, Catalin Mihai Dragomir, Eduard Vasilica Ticu and Silvester Florentin Papp previously pleaded guilty to their roles in the scheme and await sentencing. To date, nine of the 13 defendants charged in this matter have been convicted.
ICE-HSI’s Newark Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts Police Department; Cambridge, Massachusetts Police Department; and Medford, Massachusetts Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The prosecution is being handled by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Criminal Division Organized Crime and Gang Section.
Two More Members of Atm Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Plead GuiltyRead the Press Release
NEWARK, N.J. – Two members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Acting Special Agent in Charge Debra Parker of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Newark Division made the announcement.
Stefan Dumitru, 29, of Queens, New York, and Florian Calin Crainic, 47, of Des Plaines, Illinois, pleaded guilty before U.S. District Judge Esther Salas to separate informations charging them each with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Dumitru, Crainic, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Dumitru and Crainic both admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for both defendents is set for Nov. 6, 2017.
Joel Abel Garcia, Victor A. Hanganu, Radu Bogdan Marin, Marcel Peckham, Catalin Mihai Dragomir, Eduard Vasilica Ticu, and Silvester Florentin Papp previously pleaded guilty to their roles in the scheme and await sentencing. To date, nine of the 13 defendants charged in this matter have been convicted.
ICE-HSI’s Newark Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Defense counsel:
Dumitru: Roy Greenman Esq., Union, New Jersey
Crainic: Anthony Iacullo Esq., and Joshua Reinitz Esq., Nutley, New Jersey
Gloucester County, New Jersey, Man Sentenced to 114 Months in Prison for Weapons ChargeRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 114 months in prison for being a previously convicted felon in possession of a weapon, Acting U.S. Attorney William E. Fitzpatrick announced.
Darius A. Robinson, 35, of Westville, previously pleaded guilty before Judge Noel L. Hillman to Count 2 of an indictment charging him with being a felon in possession of a weapon. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Feb. 11, 2016, Robinson was arrested while in possession of a Titan .25-cal. handgun in Gloucester County. Robinson had previously been convicted on drug charges and sentenced to three years in prison.
In addition to the prison term, Judge Hillman sentenced Robinson to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the ATF, under the direction of Special Agent in Charge John B. Devito, Newark Field Division, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Former Contractor of Newark Watershed Conservation and Development Corp. Sentenced to 18 Months in Prison for Role in Fraud ConspiracyRead the Press Release
NEWARK, N.J. –The sole proprietor of two companies that purportedly provided printing and digital marketing services to the Newark Watershed Conservation and Development Corporation (NWCDC) was sentenced today to 18 months in prison for defrauding the agency, Acting U.S. Attorney William E. Fitzpatrick announced.
Kevin Gleaton, 53, of West Orange, New Jersey, previously pleaded guilty before U.S. District Judge Jose Linares to an information charging him with one count of conspiring to commit wire fraud with Donald Bernard Sr., Linda Watkins Brashear, and others, to defraud the NWCDC of money and property and one count of misuse of Social Security numbers in connection with personal bankruptcy proceedings. Judge Linares imposed both sentences today in Newark federal court.
According to documents filed in these cases and statements made in court:
From May 2011 to September 2012, Gleaton conspired with Bernard, who was then employed as manager of Special Projects for the NWCDC, Brashear who was then the NWCDC executive director, and others, to defraud the NWCDC of more than $110,000 for work that was never performed by Gleaton or his companies. Gleaton was the owner of the Synergy Group, a company that received more than $58,000 in 2011 from the NWCDC, purportedly for printing services, as well as Mindshare Media, which received more than $52,000 from the NWCDC in 2012, purportedly for digital marketing services.
Gleaton deposited the payments issued to his companies by the NWCDC on the basis of fraudulent invoices, and then provided a substantial portion of the money received – more than $97,000 – to Bernard, who, in turn, shared a portion with Brashear, among others. Gleaton provided the money to Bernard either directly, or indirectly through the “consultant intermediary,” an individual who operated a firm that provided consulting services to the NWCDC. The conspiracy was facilitated by interstate wire transmissions, including emails sent by Bernard to Brashear and the consultant intermediary. Brashear pleaded guilty in December 2015 to scheming to defraud the NWCDC of her honest services in the affairs of the NWCDC by taking kickbacks (from various vendors including Gleaton), and of the NWCDC’s money and property, as well as to subscribing to a false federal personal income tax return. In January 2016, Bernard pleaded guilty to Counts 9 and 10 of a 20-count indictment returned in December 2014, charging him with the use of interstate facilities to promote and facilitate bribery in violation of the Travel Act, and Count 1 of an information that charged him with making and subscribing a false personal tax return.
Gleaton also admitted to using multiple Social Security numbers, other than the number lawfully issued to him by the Commission of Social Security, in connection with his bankruptcy filings in 2011 and 2012.
In addition to the prison term, Judge Linares sentenced Gleaton to three years of supervised release and ordered him to pay restitution of $111,600.
Bernard was sentenced by Judge Linares on July 13, 2017, to eight years in prison. Watkins Brashear is scheduled to be sentenced Sept. 11, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John Grasso; U.S. Department of Housing and Urban Development Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi; IRS–Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and criminal investigators of the U.S. Attorney’s Office, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance.
The government is represented by Assistant U.S. Attorneys Jacques Pierre and Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Three Jersey City Police Officers Admit Conspiracy to Commit FraudRead the Press Release
NEWARK, N.J. – Three Jersey City police officers today admitted participating in a conspiracy to defraud Jersey City by obtaining compensation for off-duty work that they did not perform, Acting U.S. Attorney William E. Fitzpatrick announced.
James Cardinali, 38, of Jersey City, Victor Sanchez, 37, of Hasbrouck Heights, and Christopher Ortega, 29, of Brick, all pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to separate informations charging them with one count each of conspiracy to commit fraud.
According to documents filed in this case and statements made in court:
Cardinali’s duties included serving as the “pick coordinator” for Jersey City’s South District, responsible for assigning police officers to off-duty details. On multiple occasions, Cardinali asked representatives of certain vendors who were performing work in the South District to sign Jersey City off-duty vouchers indicating that a police officer had completed an off-duty assignment for that vendor, even though no officer had in fact completed any assignment. Cardinali then falsely represented on these vouchers that a particular police officer had completed an off-duty assignment. These officers were paid for work they did not perform. Cardinali personally obtained from the officers some of the money that they were paid as a result of the fraudulent conduct.
Sanchez and Ortega defrauded Jersey City by consenting to the submission of false and fraudulent off-duty vouchers to Jersey City indicating that they had completed certain off-duty assignments that they had not, in fact, completed. Both were paid by the city for off-duty assignments that they did not actually complete.
All three officers face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Cardinali is required to forfeit the $39,587; Sanchez is required to forfeit $21,583; and Ortega is required to forfeit $18,336. Sentencing for all three defendants is scheduled for Nov. 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel:
Cardinali: Matthew E. Beck Esq., West Orange, New Jersey
Sanchez: Joel Silberman Esq., Jersey City, New Jersey
Ortega: Henry Klingeman Esq., Newark, New JerseyNew York Man Admits North Jersey Knifepoint Bank RobberyRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted robbing a bank in Bergen County, New Jersey, in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
Andres Dominguez, 38, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of bank robbery.
According to documents filed in this case and statements made in court, Dominguez admitted that he robbed a Bank of New Jersey in Fort Lee, New Jersey, on Jan. 12, 2017, while brandishing a large knife.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 31, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, for its contribution to the case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Florida Man Sentenced to 73 Months in Prison for Leading Stolen Credit Card Trafficking Ring Involving More Than 114,000 Accounts and Losses of $23 MillionRead the Press Release
NEWARK, N.J. – A Florida man was sentenced today to 73 months in prison for his role in a conspiracy to possess and traffic stolen credit card data held by New Jersey residents, Acting U.S. Attorney William E. Fitzpatrick announced.
Miguel Gonzalez, 43, of Miami, Florida, previously pleaded guilty before U.S. District Court Judge Esther Salas to an information charging him with one count of conspiracy to commit wire fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between January 2010 and July 2013, Gonzalez obtained and possessed stolen credit card data for more than 114,000 credit card accounts. Gonzalez purchased the stolen credit card information from various vendors who advertise and transmit the data over the Internet using email and instant chat software. These vendors sold stolen credit card data obtained from network intrusions into various corporate victims, including major retailers in the state of New Jersey. The stolen credit card data was used by Gonzalez and others to create counterfeit credit cards, which were used to enter into unauthorized and fraudulent transactions. The credit card issuers associated with the more than 114,000 stolen credit card accounts suffered a combined loss of more than $23 million.
In addition to the prison term, Judge Salas sentenced Gonzalez to five years of supervised release, fined him $100,000 and ordered him to forfeit a number of items, including a house, boat, car and $30,000 in jewelry.
Acting U.S. Attorney Fitzpatrick credited agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Paul A. Murphy, Chief of the U.S. Attorney’s Office’s Economic Crimes Unit, and Dara Aquila Govan.
Defense counsel: Ricardo P. Hermida Esq., Miami
Essex County, New Jersey, Man Sentenced to 39 Months in Prison for Defrauding InvestorsRead the Press Release
NEWARK, N.J. – A North Caldwell, New Jersey, man was sentenced today to 39 months in prison for fraudulently using more than $550,000 in investment funds that he solicited to purchase and sell consumer products in bulk, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael Esposito, 45, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From August 2013 through February 2017, Esposito was the president of numerous entities that purported to purchase consumer products in bulk from manufacturers for resale to wholesalers and retailers. Esposito told potential investors that he could purchase consumer goods – such as soda and bottled water – at substantial discounts, and that he had buyers ready to purchase the products at a significant profit.
In return for providing the funds necessary to purchase the products, Esposito promised the victim investors a large percentage of the profits. However, Esposito used the funds for his personal expenses and to pay other investors in order to make it appear the money was properly used. Esposito admitted that his actions resulted in losses of more than $550,000.
In addition to the prison term, Judge Martini sentenced Esposito to three years of supervised release. Restitution will be determined at a late date.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked investigators with the Florida Office of Financial Regulation for their assistance.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Sarah Devlin of the Asset Forfeiture Unit in Newark.
Defense counsel: Brooke M. Barnett Esq., Newark
Passaic County Man Admits Defrauding Clifton-Based Trucking Company of $900,000Read the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in a scheme to defraud a trucking company out of more than $900,000, Acting U.S. Attorney William E. Fitzpatrick announced.
Angel D. Vidal, 25, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to Count 1 of an indictment charging him with wire fraud.
According to documents filed in this and other cases and statements made in court:
Lisa Popewiny, 55, of Clifton, New Jersey, was the payroll clerk at Clifford B. Finkle Jr. Inc., a Clifton-based company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, Vidal, and his two brothers, Angel Gabriel Vidal, 23, and Miguel Vidal, 23, a former truck driver for the company, engaged in a scheme to defraud the company out of $920,380. On June 26, 2017, Angel Gabriel Vidal pleaded guilty before Judge Arleo to Count 2 of an indictment charging him with wire fraud. On March 30, 2017, Miguel Vidal pleaded guilty to an information charging him with wire fraud. Popewiny is scheduled to stand trial on Oct. 2, 2017.
Popewiny allegedly falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees, including the Vidal brothers. All of the Vidal brothers have admitted to allowing the use of their personal identifying information to generate the fraudulent paychecks. The three men then converted the checks, many of which were deposited into their bank accounts and then funneled out of the accounts in cash. Miguel Vidal admitted to recruiting other individuals to provide their personal information so that Popewiny could allegedly falsely add them to the payroll. Over the course of the scheme, Popewiny allegedly input false hours for at least 12 different individuals. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, several paychecks remained unclaimed that turned out to be fraudulently issued.
The charge to which Angel D. Vidal and his brothers pleaded guilty carries a maximum punishment of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 17, 2017.
Acting U.S. Attorney William E. Fitzpatrick credited criminal investigators in the U.S. Attorney’s Office and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division.
The charges and allegations against Popewiny are merely accusations, and she is presumed innocent unless and until proven guilty.
Newark Police Officer Admits Conspiracy to Commit Fraud Against Housing Assistance ProgramRead the Press Release
NEWARK, N.J. – A Newark police officer today admitted conspiring to fraudulently obtain payments under the federal public housing assistance program known as “Section 8,” Acting U.S. Attorney William E. Fitzpatrick announced.
Luis Cancel, 50, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of agreeing with another individual to obtain Section 8 public housing benefits to which they were not entitled.
According to documents filed in this case and statements made in court:
The Section 8 Program is a federal public housing assistance program administered by the U.S. Department of Housing and Urban Development (HUD). It provides rent subsidies to qualified low-income individuals. HUD provided federal grant money to the Newark Housing Authority (NHA) for the Section 8 Program. Under the NHA’s Section 8 Program, a tenant’s rental assistance was based upon the tenant’s anticipated family gross income. Tenants receiving Section 8 assistance from the NHA had to inform the NHA of all members of the household and the annual household income.
From January 2010 to May 2015, Cancel, then a Newark police officer, lived with another person (Individual 1) who was receiving Section 8 benefits. Cancel and the other individual agreed not to disclose to the NHA that they were living together or that Cancel was a Newark police officer, and, also, a security guard with the Robert Treat Hotel. Individual 1 submitted fraudulent documents to the NHA that failed to disclose these facts. Cancel also submitted letters to the NHA falsely indicating that he lived at a separate residence. Based upon their misrepresentations, Cancel and Individual 1 received approximately $74,000 in Section 8 subsidies to which they were not entitled.
The count to which Cancel pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Joseph D. Rotella Esq., NewarkLeader of Violent Bloods Street Gang Gets 12 Years in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A leader of the Sex Money Murder set of the Bloods street gang was sentenced today to 144 months in prison for his role in a racketeering conspiracy that involved murder, attempted murder, conspiracy to commit murder, and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Rajohn Wilson, a/k/a “1090,” 26, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count Two of a superseding indictment charging him with racketeering conspiracy. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups that operate in specific geographic locations. Sex Money Murder is the subgroup that operates primarily in Essex County, New Jersey.
Rajohn Wilson – who served as a “five-star general” of Sex Money Murder and is the younger brother of Narik Wilson, a/k/a “Spaz,” the leader or “O.G.” of the gang – admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives.
Rajohn Wilson admitted that he conspired with members of Sex Money Murder on Feb. 4, 2007, and Feb. 16, 2007, to murder rival gang members, and that he and others carried out drive-by shootings of two victims in and around Newark. Wilson also admitted conspiring to distribute more than one kilogram of heroin.
In addition to the prison term, Judge Wigenton sentenced Wilson to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge John B. Devito, for their assistance.
The government is represented by Assistant U.S. Attorney Dara Govan and Mary Toscano, Chief of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Howard Brownstein Esq., Union City, New Jersey
Former Employee of Commercial Supply Company Admits Fraud, False Testimony Before Grand JuryRead the Press Release
TRENTON, N.J. – A former salesman at Bayway Lumber, a Linden, New Jersey, company that sold commercial and industrial products to numerous public and private entities, today admitted his role in a scheme to defraud customers and lying to a federal grand jury, Acting U.S. Attorney William E. Fitzpatrick announced.
Adam Martignetti, 43, of South River, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Counts 1 and 6 of an indictment charging him with conspiracy to commit wire fraud and making false declarations before a grand jury.
According to documents filed in this case and statements made in court:
Martignetti admitted that from 2011 through 2013 he conspired with others to defraud certain Bayway Lumber customers by providing free items to customers’ employees and then recouping the cost of the items (plus additional revenue for Bayway Lumber) by overbilling and fraudulently billing the customers. Martignetti also admitted to supplying lower-quality, less expensive plywood to a customer, but charging for the more expensive, higher-quality plywood the customer had ordered.
Martignetti gave a variety of personal items to employees of some of Bayway Lumber’s customers, including Amtrak, the City of Elizabeth, and the Plainfield Board of Education. These items included a laptop, several iPads, a camera and sound system, patio furniture, and other merchandise. Under the supervision of Robert Dattilo, president and partial owner of Bayway Lumber, Martignetti then overbilled and fraudulently billed those customers. Dattilo kept a running tally of how much Martignetti and others overbilled and fraudulently billed customers, which many at Bayway Lumber referred to as the “Bank,” to ensure that Bayway Lumber recovered the full cost of the free items. Dattilo previously pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced in July 2016 to 48 months in prison and ordered to pay $708,386 in restitution.Martignetti also conspired to provide one Bayway Lumber customer, Consolidated Edison Co. of New York Inc. (Con Edison), with lower-quality wood than it ordered and paid for. When Con Edison ordered graded plywood, a type of plywood graded by mills that had met a certain set of specifications, Martignetti, at Dattilo’s instruction, routinely sent plywood that was of a lower grade or not graded at all, including “reject” plywood, but charged Con Edison for the higher-quality plywood that it ordered.
Martignetti also pleaded guilty to falsely testifying before a federal grand jury while appearing as a witness under oath in March 2013 that he had never given Bayway Lumber items to City of Elizabeth employees for free, and that Elizabeth was never charged for items that were for Elizabeth employees’ personal use.
The conspiracy to commit wire fraud charge to which Martignetti pleaded guilty carries a maximum penalty of 20 years in prison. The charge of knowingly making false statements before a grand jury guilty carries a maximum penalty of five years in prison. Each count also carries a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for Sept. 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; the Office of Inspector General, Amtrak, under the direction of Special Agent in Charge Michael Waters; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division, and Assistant U.S. Attorney Barbara R. Llanes, Chief, General Crimes Unit, of the U.S. Attorney’s Criminal Division, in Newark.
Defense Counsel: Michael Armstrong Esq., Willingboro, New Jersey
Essex County, New Jersey, Man Sentenced to 41 Months in Prison for Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – A Belleville, New Jersey, man was sentenced today to 41 months in prison for his role in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Rickie Horvath, 56, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug-trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Horvath as a member of the drug trafficking organization.
Horvath admitted that from Feb. 5, 2014 to Aug. 13, 2014, he personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled, and sold the pills to members of the conspiracy and others. He said that on a single day in June 2014, he traveled to a doctor’s office in Livingston, New Jersey, where he and two conspirators each obtained a prescription for 60 Endocet pills. Horvath and his conspirators dropped off the three prescriptions to be filled by a pharmacy in East Orange, New Jersey. Horvath admitted that he and his two conspirators then found a fourth conspirator to buy the 180 Endocet pills. Horvath and his conspirators traveled to the East Orange pharmacy with the third conspirator buyer, where Horvath used the fourth conspirator’s money to purchase the filled prescriptions. Horvath and his conspirators then sold the 180 Endocet pills to the fourth conspirator.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence. The Endocet pills obtained and sold by Horvath each contained 10 milligrams of oxycodone.In addition to the prison term, Judge Salas sentenced Horvath to three years of supervised release.
Of the 16 people that have been charged in this conspiracy, 13 have been convicted, including the leader, Victoria Horvath, who was sentenced Oct. 20, 2016 to 92 months in prison. Charges against a defendant who died in April 2014 have been dismissed.
Acting U.S. Attorney Fitzpatrick credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark. The principal mission of the OCDETF program, under which this investigation was conducted, is to identify, disrupt and dismantle the most serious drug-trafficking, weapons-trafficking and money-laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Damian Conforti Esq., Newark
Employee of New Jersey-Based Trucking Company Gets 33 Months in Prison for Stealing More Than $3 Million from Her EmployerRead the Press Release
TRENTON, N.J. – A former employee of a New Jersey based-trucking company was sentenced today to 33 months in prison for stealing more than $3 million by issuing company checks for her own benefit, Acting U.S. Attorney William E. Fitzpatrick announced.
Tracey Perrigan, 55, of Sparta, Tennessee, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to Count One of an indictment charging her with wire fraud. Judge Sheridan imposed the sentence today in Trenton federal court.According to documents filed in this case and statements made in court:
Perrigan was an employee of a company identified in the indictment as “Company A,” the corporate parent of several subsidiary trucking, rigging, and transportation companies. Company A was headquartered in Oceanside, New York, and had a Branchburg, New Jersey, facility where Perrigan worked.
Company A used the “Comchek” system, which enables clients to authorize and monitor fuel and repair expenditures by drivers in remote locations. As part of her duties, Perrigan was responsible for authorizing Comcheks drawn on Company A’s bank account. From March 2007 through August 2015, Perrigan diverted $3.25 million from her employer to an entity identified as “Company B,” a trucking and towing company based in Tennessee that she owned with another person. Company B never conducted any business with Company A.
In addition to the prison term, Judge Sheridan sentenced Perrigan to three years of supervised release. Perrigan must also pay restitution of $3,251,419.65.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Member of Conspiracy to Import and Traffic Counterfeit Electronic Products SentencedRead the Press Release
An Italian national who smuggled counterfeit electronics, including Apple iPhones, iPads and iPods, from China for sale in the U.S. was sentenced today to 37 months in prison.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Special Agent in Charge Debra Parker of Homeland Security Investigations (HSI) in Newark; and Bergen County Prosecutor Gurbir Grewal made the announcement.
Rosario La Marca, 54, a resident of Naples, Italy, pleaded guilty on February 22, before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiracy to traffic in counterfeit goods, to smuggle goods into the U.S., and to structure financial transactions, and Count Two, charging him with trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.
According to facts admitted during the plea, from July 2009 through February 2014, La Marca, Andreina Becerra, 32, a Venezuelan national, Roberto Volpe, 35, an Italian national, and Jianhua Li, 42, conspired to smuggle into the U.S. from China more than 40,000 electronic devices and accessories bearing counterfeit Apple and Sony trademarks. The estimated manufacturer’s suggested retail prices for an equivalent number of genuine items would have exceeded $15 million. The devices were shipped separately from the labels bearing counterfeit trademarks in order to avoid detection by U.S. Customs and Border Protection. The devices were then labeled and packaged after they passed through customs.
The defendants then re-shipped the devices to conspirators all over the U.S. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits – broken into multiple deposits of less than $10,000 each to avoid bank reporting requirements – and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
The defendants made more than 100 illegal wire transfers totaling more than $1.1 million to Hong Kong to facilitate their criminal activity.
In addition to the prison term, Judge McNulty sentenced La Marca to one year of supervised release.
Volpe and Becerra have both pleaded guilty to their roles in the scheme and await sentencing. Li has pleaded not guilty. The charges contained in the indictment against him are merely accusations, and he is presumed innocent unless and until proven guilty.
The case was jointly investigated by the HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Office Financial Crimes Unit, with significant assistance from Europol and Italy’s Guardia di Finanza.
The government is represented by Senior Litigation Counsel Leslie Schwartz and Assistant U.S. Attorney Sarah Devlin of the District of New Jersey and Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section.
Member of Conspiracy to Import and Traffic Counterfeit Electronic Products Gets 37 Months in PrisonRead the Press Release
NEWARK, N.J. – An Italian national who smuggled counterfeit electronics, including Apple iPhones, iPads and iPods, from China for sale in the United States was sentenced today to 37 months in prison.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting Special Agent in Charge Debra Parker of Homeland Security Investigations (HSI) in Newark; and Bergen County Prosecutor Gurbir Grewal made the announcement.
Rosario La Marca, 54, a resident of Naples, Italy, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiracy to traffic in counterfeit goods, to smuggle goods into the United States, and to structure financial transactions, and Count Two, charging him with trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.
La Marca, Andreina Becerra, 32, a Venezuelan national, Roberto Volpe, 35, an Italian national, and Jianhua Li, 42, a Chinese national currently residing in California, were originally charged in an eight-count indictment in April 2015 with importing and trafficking fake iPhones, iPads and iPods bearing counterfeit Apple trademarks, and fake camcorders bearing counterfeit Sony trademarks, as well as smuggling, structuring and international money laundering.
According to the documents filed in this case and statements made in court:
From July 2009 through February 2014, the defendants conspired to smuggle into the United States from China more than 40,000 electronic devices and accessories. The estimated manufacturer’s suggested retail prices for an equivalent number of genuine items would have exceeded $15 million. The devices were shipped separately from the labels bearing counterfeit trademarks in order to avoid detection by U.S. Customs and Border Protection. The devices were then labeled and packaged after they passed through customs.
The defendants then re-shipped the devices to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits – broken into multiple deposits of less than $10,000 each to avoid bank reporting requirements – and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
The defendants made more than 100 illegal wire transfers totaling more than $1.1 million to Hong Kong to facilitate their criminal activity.
In addition to the prison term, Judge McNulty sentenced La Marca to one year of supervised release.Volpe and Becerra have both pleaded guilty to their roles in the scheme and await sentencing. Li has pleaded not guilty. The charges contained in the indictment against him are merely accusations, and he is presumed innocent unless and until proven guilty.
The case was jointly investigated by the HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Office Financial Crimes Unit, with significant assistance from Europol and Italy’s Guardia di Finanza.
The government is represented by Senior Litigation Counsel Leslie Schwartz and Assistant U.S. Attorney Sarah Devlin of the District of New Jersey and Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section.
Defense Counsel: Scott D. Finckenauer Esq., Fairview, New Jersey
Newark Watershed Conservation and Development Corp. Contractor Gets Two Years in Jail for Role in Bribery SchemeRead the Press Release
NEWARK, N.J. – A former contractor of the Newark Watershed Conservation and Development Corporation (NWCDC) was sentenced today to 24 months in prison for his role in a bribery and kickback scheme involving an employee and consultant of the NWCDC, Acting U.S. Attorney William E. Fitzpatrick announced.
James Porter, 80, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of conspiring with Donald Bernard Sr., a former employee and consultant of the NWCDC, and others, to defraud the NWCDC and one count of tax evasion. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between October 2008 and April 2013, Porter conspired with Bernard to provide Bernard and others with a stream of concealed, undisclosed kickbacks in exchange for Bernard’s assistance in securing business opportunities and payments to two companies operated by Porter: Jim P. Enterprises LLC (JPE) and New Beginnings Environmental Services (NBES), a company in which Bernard was also a partner.
Both JPE and NBES purported to perform landscaping, snow removal, clean-up and sign posting services to the NWCDC from 2008 through 2013. JPE received payments from the NWCDC totaling more than $500,000 and NBES received approximately $290,000 from the NWCDC. Both companies submitted invoices to the NWCDC that were fraudulently inflated to cover kickback payments to Bernard and billed for some services, such as landscaping and snow removal, which were never performed.
Porter passed a stream of kickback payments to Bernard totaling more than $500,000, which was funded by the proceeds JPE and NBES obtained from the NWCDC, including cash withdrawn from the bank accounts of JPE and NBES totaling $378,867; Bernard’s use of an ATM card issued in his name to withdraw at least $74,681 directly from the NBES bank account; Bernard’s use of the NBES ATM card issued in Bernard’s name to pay personal expenses of nearly $5,000; and checks written from the accounts of JPE and NBES totaling $41,650, which were made payable to Bernard, or to companies he controlled, including a consulting company, Bernard & Associates, and the African American Heritage Parade Committee (AAHPC).
In August 2012, Porter also accepted a $5,000 check payable to JPE from Essex Home Improvements, another contractor of the NWCDC for work that was never performed, and delivered the proceeds to Bernard. The payment from Essex Home Improvements was provided to JPE, rather than to Bernard directly, as a means of concealing a kickback from Essex Home Improvements to Bernard.
From 2009 to 2012, Porter failed to report income of $767,750 from the proceeds that JPE and NBES received from the NWCDC. Porter also pleaded guilty to intentionally underreporting income for the 2012 tax year on his personal tax return by $151,603, resulting in tax due and owing of $48,971.
In addition to the prison term, Judge Linares sentenced Porter to two years of supervised release. Porter must also pay restitution of $711,083, which includes $539,583 towards the NWCDC and $171,500 to the IRS.
Bernard was sentenced by Judge Linares on July 13, 2017 to eight years in prison.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John Grasso; U.S. Department of Housing and Urban Development Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi; IRS–Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and criminal investigators of the U.S. Attorney’s Office, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Anthony Mack Esq., Newark
New York Man Gets 13 Months in Prison for Assault, Intent to Stalk on AirplaneRead the Press Release
NEWARK, N.J. – A Monsey, New York, man was sentenced today to 13 months in prison for assaulting a woman on a flight from Israel to Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced.
Yoel Oberlander, 36, previously pleaded guilty before U.S. District Judge Esther Salas to a superseding information charging him with assault with intent to commit stalking. Judge Salas imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Oberlander admitted that while on an El Al flight from Tel Aviv to Newark on May 29, 2016, he knowingly and intentionally assaulted a woman seated next to him on the plane. He admitted that he touched her in the area of her chest, upper thigh, and hand without her consent, and that he did so with the intent to harass and intimidate her.
In addition to the prison term, Judge Salas sentenced Oberlander to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation.
The government is represented by Assistant U.S. Attorneys Melissa M. Wangenheim and Joyce M. Malliet of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Eric Kanefsky Esq., Newark
Mercer County, New Jersey, Man Sentenced to 60 Months in Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 60 months in prison for his role in a conspiracy to sell more than 1.5 kilograms of cocaine and more than 87 grams of crack-cocaine in the Trenton area, Acting U.S. William E. Fitzpatrick announced.
William Enmond, 53, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base. Judge Shipp imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
From September 2013 through his arrest on Jan. 13, 2016, Enmond conspired with co-defendants Bobby Williams, Khalfini Richardson and Capitol T. Wellons to distribute cocaine and crack-cocaine, primarily from two adjacent residences in Trenton. On Sept. 6, 2013, Enmond sold 446.5 grams of cocaine to a confidential informant in exchange for $17,320.
During his plea hearing, Enmond admitted conspiring to distribute and possess with intent to distribute 1.72 kilograms of cocaine and 87.9 grams of crack-cocaine.
Judge Shipp also sentenced Enmond to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.
The government is represented by Assistant U.S. Attorneys Molly Lorber and Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.
Defense counsel: Mark G. Davis Esq., Hamilton, New Jersey
General Foreman at Port Elizabeth Arrested for Salary FraudRead the Press Release
NEWARK, N.J. – A member of the International Longshoremen’s Association (ILA) and general foreman for a Port Elizabeth terminal operator was arrested this morning for fraudulently collecting a nearly $500,000 annual salary, much of which was for work he never performed, Acting U.S. Attorney William E. Fitzpatrick announced.
Paul Moe Sr., 66, of Atlantic Highlands, New Jersey, is charged in an indictment with one count of wire fraud conspiracy and 13 substantive counts of wire fraud. He appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on $250,000 unsecured bond. He will be arraigned at a later date.
According to the indictment:
From September 2015 through March 2017, Moe fraudulently collected a compensation package that paid him almost $500,000 annually while showing up at his job site for as little as eight hours per week. In order for Moe to collect his $9,300 weekly paycheck, other conspirators submitted false timesheets each day on his behalf and even credited him for up to 16 hours of overtime a day. The 13 substantive wire fraud counts consist of one-week increments in which Moe – having either failed to appear at the job site or while being out of state or out of the country – was paid as if he had been on the job for a minimum of 40 hours a week.
Each count is punishable by up to five years in prison and a $250,000 fine. The charges and allegations in the indictment are merely accusations, and Moe is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents and investigators with the U.S. Department of Labor Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; the Office of Employee Benefit Security Act (EBSA), under the direction of Regional Director Jonathan Kay, the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault, and the Office of Labor Management Standards, under the supervision of District Director Andriana Vamvakas, with the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Special Assistant U.S. Attorney Tracey Agnew.
Defense counsel: Gerald McMahon Esq., New York
Trucking Company Owner Admits Tax Evasion and Bankruptcy FraudRead the Press Release
TRENTON, N.J. –The owner of a New Jersey trucking company today admitted committing tax evasion and bankruptcy fraud while operating his wine delivery business, Acting U.S. Attorney William E. Fitzpatrick announced.
Giacomo Giorlando, 54, of Morganville, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with three counts of tax evasion and one count of bankruptcy fraud.
According to documents filed in this case and statements made in court:
As an owner of 4 G’s Trucking, Giorlando comingled business revenue with his personal funds, utilized a check casher to cash business checks, deposited the proceeds of his business into various bank accounts, and then significantly inflated expenses to reduce his taxable income for the years 2011, 2012 and 2014. He admitted he was responsible for a $460,012 tax loss from those three years.
In addition, when Giorlando filed for bankruptcy in May 2014, he failed to accurately report his assets from at least 10 accounts at TD Bank and one account at Provident Bank that he maintained during the time frame covered by the bankruptcy. The bankruptcy was approved based upon this false and incomplete information. He was discharged on March 13, 2015.
The tax evasion and bankruptcy charges each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is set for Nov. 17, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
Middlesex County Man Admits $2 Million Fraud Involving Bogus Small Business Administration LoanRead the Press Release
NEWARK, N.J. – A New Brunswick, New Jersey, man today admitted defrauding a bank by fraudulently using a federally-backed $2 million small business loan on personal expenses, Acting U.S. Attorney William E. Fitzpatrick announced.
John Cheng, 58, of New Brunswick, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with loan application fraud.
According to documents filed in this case and statements made in court:
On Dec. 7, 2007, Cheng submitted a Small Business Administration (SBA) loan application for $1.75 million and a commercial loan application for $2 million, purportedly for financing relating to a restaurant in Skillman, New Jersey.
The loan applications were submitted to an independent lender through the SBA Loan Guaranty Program, which authorizes the SBA to provide financial assistance to eligible small businesses through loan guarantees to participating lenders. Rather than loan money directly to small businesses, the SBA provided a guaranty to the independent lender that the SBA would repay a percentage of a loan in the event that a borrower defaulted.
Cheng’s SBA loan application falsely stated that the loan would be used for construction, acquisition of machinery and equipment, and working capital. After receiving $2,082,229 from the victim bank in March 21, 2008, Cheng used the funds for his own benefit, including paying off gambling debts, sending money to family members, and paying a federal tax bill.
The charge to which Cheng pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Under his plea agreement, Cheng must pay restitution of $2,657,687.15 to the bank he defrauded and forfeit $1,696,506. Sentencing is scheduled for Oct. 25, 2017.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the U.S. Small Business Administration’s Office of Inspector General, Eastern Region, under the direction of Special Agent in Charge Kevin Kupperbusch, and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero, for their assistance.
The government is represented by Assistant U.S. Attorney Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
Defense counsel: Steven D. Altman Esq., New Brunswick, New Jersey
Former Corporate General Counsel Sentenced to A Year in Prison for Conspiring to Obstruct Justice in Federal Criminal TrialRead the Press Release
CAMDEN, N.J. – The former general counsel of VO Financial Corp. was sentenced today to 12 months in prison for conspiring to obstruct justice in a federal criminal case tried in 2013, Acting U.S. Attorney William E. Fitzpatrick announced.
Joshua L. Gayl, 37, of Lafayette Hill, Pennsylvania, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of conspiracy to obstruct justice. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this and other cases and statements made in court:
Adam and Ashley Lacerda, Ian Resnick, and several others were charged in April 2012 with conspiracy to commit mail and wire fraud based on their actions at the Vacation Ownership Group, which offered phony consulting services to owners of timeshares. After they were charged, the VO Group became VO Financial, and Gayl was hired as general counsel. The Lacerdas continued to run VO Financial through their July 2013 criminal trial.
Gayl admitted misleading a witness, identified as “Victim 1,” after he learned that Victim 1 had told the FBI about being defrauded by the VO Group.
Gayl contacted Victim 1 intending to obtain statements favoring the defense in the criminal case, but he concealed his true intentions from Victim 1. Instead, he wrote Victim 1 offering assistance if Victim 1 would tell him what Victim 1 told the FBI. Gayl and an accomplice then called Victim 1 and misleadingly said that they were recording the call for quality assurance and training purposes, when in fact they were trying to get Victim 1 on tape making statements favorable to the defense. Victim 1 told Gayl that the VO Group had promised to sell Victim 1’s timeshare, a VO Group misrepresentation alleged in the indictment. Gayl omitted this allegation when he told Victim 1 what was alleged in the criminal case. Although he did not know what the VO Group representative actually told Victim 1, Gayl told Victim 1 that “we do not sell timeshares” and that Victim 1 had some “confusion” in recalling a promise to sell Victim 1’s timeshare.
Gayl ended the call and consulted with Adam Lacerda. Gayl then called Victim 1 back at Lacerda’s request to persuade Victim 1 that Victim 1’s recollection was mistaken – but Gayl did not tell Victim 1 that his purpose was to get recorded statements to help the criminal defense. Gayl told Victim 1 in the second call that it was “likely” and “logical” that Victim 1 had misunderstood that the VO Group sold timeshares.
Gayl also helped the defendants send potential trial witnesses payments intended to influence their testimony. Adam and Ashley Lacerda wanted these refunds paid to help the defense case at trial and make the recipients testify more favorably to the defense, but Gayl did not tell the potential witnesses that these were the purposes of the payments. Gayl wrote a letter urging “Victim 2” to take a refund, knowing that Resnick wanted Victim 2 to take the refund because Victim 2 was a potential trial witness against Resnick. A month before trial, Gayl wrote letters offering refunds to “Victim 3” and “Victim 4,” but failed to tell them that they were being offered refunds because they were potential trial witnesses.
Gayl also lied in responding to a trial subpoena asking VO Financial to produce records. After Adam Lacerda’s criminal lawyer told the U.S. Attorney’s Office and Gayl that he had advised Lacerda not to be involved in the subpoena response, Gayl told Adam Lacerda about one subpoenaed recording harmful to the defense and saw Lacerda access the recording. Lacerda deleted the damaging portion of the recording. When Gayl gave the U.S. Attorney VO Financial’s response to the subpoena, he included the altered recording and a false certification that he did not consult with Lacerda about the subpoena response. Gayl subsequently listened to the recording and realized that Lacerda had altered it.
In addition to the prison sentence, Judge Hillman sentenced Gayl to three years of supervised release and ordered him to pay a $5,000 fine.
Adam Lacerda, Ashley Lacerda, and Ian Resnick were convicted of conspiracy to commit mail and wire fraud and other offenses. Adam Lacerda was sentenced in June 2015 to 27 years in prison. Ian Resnick was sentenced to 18 years in prison in April 2016. Ashley Lacerda was sentenced to six years in prison in June 2016.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
Defense counsel: Ellen C. Brotman, Esq., Philadelphia
Owner of Commercial Supply Companies Gets 60 Months in Prison for Conspiring to Defraud Approximately 40 Companies of More Than $1 MillionRead the Press Release
CAMDEN, N.J. – The owner of KLA International Inc., Quad Trade Services Inc., and TCI Technologies Inc., was sentenced today to 60 months in prison for his role in a conspiracy to defraud approximately 40 businesses out of more than $1 million, Acting U.S. Attorney William E. Fitzpatrick announced.
Keith B. Fisher Sr., 59, of Philadelphia, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to a superseding information charging him with one count of conspiracy to commit mail fraud. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From February 2010 through August 2015, Fisher and his conspirators, through the use of three purported commercial supply companies, bid on federal contracts through FedBid.com, an online marketplace that provided reverse auction services and enabled government agencies to post requirements for goods or services with the intention of attracting quotes and offers from vendors. Upon submitting a winning bid, Fisher’s companies were awarded contracts to provide goods to the respective government agency.
Fisher and his conspirators orchestrated the fraud by subcontracting with third-party vendors throughout the United States to provide these goods to the respective government agencies. Fisher and his conspirators induced the third-party vendors to ship the goods to the government agencies on credit by falsely promising to pay the vendors for the goods and making false and fraudulent representations to the vendors about the credit-worthiness, business history, and financial status of Fisher’s companies. Fisher and his conspirators provided the vendors with fraudulent credit applications, false trade references, and fraudulent information about the financial status of his companies. Upon receipt of the goods and materials supplied by the third-party vendors, the government agencies paid Fisher and his conspirators. Fisher, in turn, failed to pay or only made nominal payments to the 40 victim vendors, who were owed more than $1 million for the goods and materials supplied to the government.
In addition to the prison term, Judge Bumb sentenced Fisher to three years of supervised release and ordered him to pay restitution of $1,176,168.89.
Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of the Interior, Office of Inspector General, under the direction of Special Agent in Charge Michael V. Graziano, special agents with the U.S. Naval Criminal Investigative Service - Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont, special agents with the U.S. Army Criminal Investigation Command - Mid-Atlantic Fraud Field Office, under the direction of Special Agent in Charge L. Scott Moreland, special agents with the Department of Veterans Affairs, Office of Inspector General - Northeast Field Office, under the direction of Special Agent in Charge Donna L. Neves, special agents from the U.S. Department of Justice, Office of Inspector General - Fraud Detection Office, under the direction of Special Agent in Charge Lewe Sessions, and Postal Inspectors with the United States Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker in Philadelphia, for conducting the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
Defense counsel: Keith B. Fisher Sr., Pro Se
Member of Trenton Drug Trafficking Organization Sentenced to 74 Months in PrisonRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 74 months in prison for his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding area, Acting U.S. Attorney William E. Fitzpatrick announced today.
Elijah Abdullah, a/k/a “Uncle E,” a/k/a “E,” 21, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part his guilty plea, Abdullah admitted to possessing one or more firearms during the conspiracy. Judge Wolfson imposed the sentence today in Trenton federal court.
In December 2016, Abdullah and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader and Elijah Abdullah’s brother, Ishmael Abdullah.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Elijah Abdullah and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO, and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Elijah Abdullah.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with the narcotics conspiracy, Elijah Abdullah and other members of the Abdullah DTO maintained joint access to multiple firearms.
In addition to the prison term, Judge Wolfson sentenced Abdullah to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Lawrence J. Panetta; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian A. Michael; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Michael A. Armstrong, Willingboro, New Jersey
Four Individuals Charged with Interstate Gun Trafficking Conspiracies Spanning from Georgia to New JerseyRead the Press Release
NEWARK, N.J. - Three Georgia men and a New Jersey woman were charged today with conspiring to illegally sell numerous firearms bound for New Jersey, including an assault rifle with a 75-round magazine and multiple handguns with extended magazines, Acting U.S. Attorney William E. Fitzpatrick announced.
Tyheed Jefferson, 33, a/k/a “Solo,” of Albany, Georgia, Mathias Connor, 41, of Atlanta, Georgia, and Nakiya Glenn, 28, of Irvington, New Jersey, are charged by criminal complaint with one count of unlawfully selling firearms to an individual that they knew did not reside in their state of residence, namely Georgia. Tyheed Jefferson was also charged with three counts of possession of a firearm by a convicted felon and one count of methamphetamine distribution.
Carnell Jefferson, 25, of Albany, is charged in a separate complaint with conspiracy to engage in the business of unlicensed firearms dealing.
Tyheed Jefferson and Carnell Jefferson were arrested this morning and will appear this afternoon before U.S. Magistrate Judge Thomas Q. Langstaff in Albany federal court. Glenn will appear this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. Connor is still at large.
According to the complaints:
From January 2017 through July 2017, Tyheed Jefferson, Connor, and Glenn were part of a gun tracking ring that used “straw purchasers” to buy and transport firearms in Georgia. Connor allegedly assisted Tyheed Jefferson – the alleged leader of the ring – with the acquisition, transport and storage of the firearms in Georgia. On at least two occasions, the firearms were sold in Georgia, knowing that they were being transported to New Jersey. On at least five other occasions, the firearms were purchased in Georgia and then sold in New Jersey. Glenn stored some of those firearms at her residence in Irvington.
In addition, Tyheed Jefferson is charged with distributing methamphetamine, which he sold during a sale of five firearms on May 24, 2017.
From October 2014 through July 2016, Carnell Jefferson allegedly purchased numerous firearms at federally licensed firearms dealers in Albany and Leesburg, Georgia, on behalf of another conspirator, knowing that the firearms would be transported to New Jersey. Jefferson was paid $50 per firearm. Firearms purchased by Carnell Jefferson were later recovered in New Jersey in relation to criminal activity between December 2014 and January 2017.
In total, the investigation recovered 47 illegal firearms, including assault rifles, revolvers, semi-automatic handguns, a shotgun, and numerous rounds of ammunition.
The counts of conspiracy to deal in firearms without a license and conspiracy to engage in the business of unlicensed firearms dealing each carry a maximum potential penalty of five years in prison and a $250,000 fine. The count of possession of firearms by a convicted felon carries a maximum penalty of 10 years in prison and a $250,000 fine. The count of distribution of methamphetamine carries a maximum potential penalty of 20 years in prison.
Acting U.S. Attorney Fitzpatrick credited special agents of the ATF, under the direction of Acting Special Agent in Charge Lawrence J. Panetta, Newark Field Division, and Special Agent in Charge Wayne L. Dixie, Atlanta Field Division, as well as the N.J. Department of Corrections, under the direction of Commissioner Gary M. Lanigan and the N.J. State Parole Board, under the direction of Chairman James Plousis, with the investigation leading to today’s charges.
The government is represented by Senior Litigation Counsel Robert Frazer of the U.S. Attorney's Organized Crime/Gang Unit in Newark.
The charges and allegations in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Florida Man Gets 17 Months in Prison for Role in $65 Million Stolen Identity Income Tax Refund SchemeRead the Press Release
NEWARK, N.J. – A Miami man was sentenced today to 17 months in prison for depositing over $4.7 million in fraudulently obtained tax refund checks as part of a massive stolen identity income tax scheme, Acting U.S. Attorney William E. Fitzpatrick announced.
Roberto Diaz, 48, formerly of Demarest, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit theft of government funds, one count of theft of government funds, and one count of aggravated identity theft. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Afterwards, they completed Individual Income Tax Return 1040 Forms using the fraudulently obtained information and made it appear that the “taxpayers” listed on the fraudulent returns were entitled to refunds. They also directed the U.S. Treasury Department to issue refunds to locations they could control or access in various ways.
At his plea hearing, Diaz admitted that he received fraudulently obtained refund checks and deposited them into banks accounts he controlled or were in the names of his associates or their companies. Diaz also admitted that he and others conspired to bribe a mail carrier to intercept refund checks before they were delivered to the people who had their identity stolen as part of the scheme.
Diaz admitted that during the course of the conspiracy, he was responsible for depositing or causing the deposit of over $4.7 million in fraudulently obtained tax refund checks.
In addition to the prison term, Judge Cecchi sentenced Diaz to three years of supervised release and ordered him to pay restitution of $4,773,043.43.
Diaz was previously charged in September 2012 along with 13 other defendants in multiple, separate criminal complaints. The $65 million scheme involved more than 8,000 fraudulent income tax returns and losses to the United States of over $12 million.
By tracing the specific IP addresses from which the returns were submitted, law enforcement officers identified that only a handful of IP addresses were responsible for filing the fraudulent returns. During the course of the investigation, law enforcement identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently claimed refunds before they were delivered to members of the conspiracy.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark Mckevitt; special agents of the the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian A. Michael, with the investigation.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Paul Brickfield Esq., River Edge, New Jersey
Doctor Gets 37 Months in Jail for Structuring over $1.4 MillionRead the Press Release
TRENTON, N.J. - A physician who ran a medical office in Parlin, New Jersey, was sentenced today to 37 months in prison for structuring over $1.4 million in order to avoid reporting requirements, Acting U.S. Attorney William E. Fitzpatrick announced.
Joseph A. Spinapolice, 73, of Palm Coast, Florida, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with structuring financial transactions. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Spinapolice was a physician who operated Middlesex Healthcare Associates LLC, a medical office in Parlin. Spinapolice’s practice did not accept insurance and received payment primarily in cash. Spinapolice admitted that from January 2013 through July 2015, he deposited a total of $1,463,974 in cash proceeds via more than 198 separate transactions, all done in an amount of less than $10,000 in order to avoid currency reporting requirements.
In addition to the prison sentence, Judge Wolfson sentenced Spinapolice to a year of supervised release. Spinapolice also consented to the entry of a forfeiture money judgment in the amount of $1,463,974.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation. He also thanked the Drug Enforcement Administration, the Monmouth County Prosecutor’s Office, the Middlesex County Prosecutor’s Office and the Borough of Sayreville Police Department for their assistance.
The government is represented by Senior Litigation Counsel R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Matthew S. Adams Esq., Roseland, New Jersey
Member of Drug Trafficking Organization Admits Conspiring to Sell Heroin in Hudson CountyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man today admitted distributing heroin in Hoboken, New Jersey, on multiple occasions, Acting U.S. Attorney William E. Fitzpatrick announced.
Travis Thomas, a/k/a “Mush,” 27, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an indictment charging him with one count of conspiracy to distribute heroin and seven substantive counts of heroin distribution.
According to documents filed in this case and statements made in court:
Between July 2015 and December 2015, Thomas conspired with others to distribute heroin in Hudson County, including Hoboken. Thomas admitted that he distributed over 100 grams of heroin and worked with others, including Sterling McCoy, a/k/a “Boogs,” 33, of Pleasantville, New Jersey, and Jason Henderson Wheeler, a/k/a “J,” 28, of Hoboken, in furtherance of the conspiracy.
Thomas faces a sentence of between 10 years and life in prison. Sentencing is scheduled for Oct. 11, 2017. McCoy and Wheeler have already been convicted and sentenced for their roles in the conspiracy.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Brian Urbano and Erica Liu of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Jason N. Orlando Esq., Jersey City, New Jersey
Two Atlantic County Men Sentenced for Their Roles in Large-Scale Crack Cocaine Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. – Two Atlantic County, New Jersey, men were each given multi-year prison sentences for their participation in a nearly three-year conspiracy to distribute cocaine and crack cocaine in the Atlantic City, New Jersey area, Acting U.S. Attorney William E. Fitzpatrick announced today.
John Wellman, 41, of Atlantic City, New Jersey, was sentenced today to 130 months in prison. Ronald Douglas Byrd, 51, of Pleasantville, New Jersey, was sentenced July 11, 2017 to 96 months in prison. Both defendants previously pleaded guilty to Count One of an indictment charging them with conspiracy to distribute crack cocaine. U.S. District Judge Jerome B. Simandle imposed both sentences in Camden federal court.
According to documents filed in this case and statements made in court:
From February 2012 through Dec. 10, 2014, Byrd, Wellman and others engaged in a drug trafficking conspiracy through which Byrd distributed more than one kilogram of crack cocaine and Wellman distributed more than 280 grams of crack cocaine. Members of the conspiracy used Byrd’s Pleasantville residence and at least two other residences in Pleasantville and Absecon, New Jersey – including one that was rented by Wellman – to store and package cocaine and crack cocaine.
In addition to the prison terms, Judge Simandle sentenced both defendants to five years of supervised release.
The U.S Attorney’s Office charged a total of 12 individuals for their participation in this drug trafficking conspiracy. All of those charged, with the exception of one defendant who remains a fugitive, have been convicted of their roles in the drug trafficking conspiracy or related charges.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Diane M. Ruberton; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to these convictions.
He also thanked the N.J. State Police; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Howard Wiener of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Byrd: Michael Huff Esq., Philadelphia
Wellman: John F. Renner Esq., Marlton, New Jersey
Former Newark Watershed Conservation Official Sentenced to Eight Years in Prison in Bribery and Kickback SchemeRead the Press Release
NEWARK, N.J. – A former high-ranking employee of the Newark Watershed Conservation and Development Corp. (NWCDC) was sentenced today to 96 months in prison for accepting $956,948 in kickback payments for his and the former executive director’s assistance in awarding work to contractors, Acting U.S. Attorney William E. Fitzpatrick announced.
Donald Bernard Sr., 69, of West Orange, New Jersey, previously pleaded guilty before U.S. District Judge Jose Linares to Counts 9 and 10 of a 20-count indictment returned in December 2014, charging him with the use of interstate facilities to promote and facilitate bribery in violation of the Travel Act, and Count 1 of an information that charges him with making and subscribing a false personal tax return for the 2009 tax year. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in these and other cases and statements made in court:
Bernard served as a consultant to the NWCDC (from 2008 to January 2010) and then as a salaried employee (from January 2010 to March 2013). From 2008 to March 2013, Bernard was part of a corrupt arrangement with former NWCDC Executive Director Linda Watkins Brashear to solicit $956,948 in cash kickbacks from certain NWCDC contractors in exchange for providing them work and other assistance. Bernard and Brashear facilitated NWCDC payments to contractors to fund cash kickbacks to themselves, knowing payments were inflated above the amount of any work performed. They knew that in numerous instances no work at all had been performed. Bernard and Brashear used their email accounts to facilitate this scheme.
Two contractors from whom Bernard and Brashear obtained substantial cash kickbacks were Jim P. Enterprises and New Beginnings Environmental Services, both companies hired to perform landscaping, snow removal, clean-up and sign-posting services, which were affiliated with Bernard but purportedly operated by James Porter. Bernard admitted receiving $409,823 in bribes and kickbacks from Porter’s companies, funded by inflated and fraudulently obtained payments from the NWCDC, during the period January 2008 to December 2012. Bernard also admitted receiving approximately $85,000 from Essex Home Improvements, a contracting company operated by DeRosa, during the period January 2008 to March 2013, which he received either directly or indirectly through companies Bernard controlled.
Bernard also admitted filing a U.S. Individual Income Tax Return, Form 1040, for tax year 2009, which did not include approximately $314,000 in unreported income he received in kickbacks.
A co-defendant, Giacomo “Jack” DeRosa, 60, of Clinton Township, New Jersey, previously pleaded guilty to laundering a portion of $85,000 he provided to Bernard from January 2008 to August 2012 in connection with roofing work that Bernard facilitated for DeRosa with the NWCDC. DeRosa was sentenced on Oct. 25, 2016, to six months in prison.
Brashear pleaded guilty on Dec. 21, 2015, to devising a scheme to defraud the NWCDC as well as filing a false tax return by failing to report substantial income she received in connection with the kickback scheme. She is scheduled to be sentenced Sept. 11, 2017. Among the approximately $1 million in kickbacks that Brashear admitted receiving were approximately $260,000 from Porter and $27,000 from DeRosa. Porter pleaded guilty in January 2015 to conspiracy to defraud the NWCDC of honest services, money and property through the use of interstate wire transmissions, as well as tax evasion for his role in the kickback scheme. He is scheduled to be sentenced July 20, 2017.
DeRosa admitted that from January 2008 to August 2012 he provided Bernard with a stream of payments totaling approximately $85,000 for Bernard’s action and assistance in procuring NWCDC roofing work for DeRosa’s company. DeRosa provided these payments to Bernard either directly, or to Bernard’s consulting firm, or to a Newark-based civic organization run by Bernard, the African American Heritage Parade Committee. DeRosa also admitted to laundering $20,000 of the money by having it paid to Bernard indirectly through intermediaries in order to disguise DeRosa or Essex Home Improvements as the source of the funds. Two intermediaries DeRosa admitted to using to launder funds provided to Bernard included a subcontractor doing work for DeRosa’s company and Porter.
In addition to the prison term, Judge Linares sentenced Bernard to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; IRS – Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty pleas. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Jacques Pierre and Senior Litigation Counsel Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Former Port Authority Official Sentenced for His Role in Scheme to Punish Fort Lee Mayor for Not Endorsing Governor’s Re-ElectionRead the Press Release
NEWARK, N.J. – A former official of the Port Authority of New York and New Jersey was sentenced today to three years’ probation for using the authority’s resources to facilitate and conceal the cause of traffic problems in Fort Lee, New Jersey, to punish that borough’s mayor for not endorsing Gov. Chris Christie’s re-election.
David Wildstein, 55, the former director of Interstate Capital Projects at the Port Authority, pleaded guilty on May 1, 2015, before U.S. District Judge Susan D. Wigenton to an information charging him with two counts of conspiracy for his role in the scheme. Judge Wigenton imposed the sentence today in Newark federal court.
Wildstein, William E. Baroni Jr., 45, former deputy executive director of the Port Authority, and Bridget Anne Kelly, 44, former deputy chief of staff to Gov. Christie, engaged in a scheme to manufacture traffic problems in Fort Lee by reducing from three to one the number of local access lanes to the upper level of the George Washington Bridge. Baroni and Kelly were both convicted at trial for their respective roles in the scheme. On March 29, 2017, Judge Wigenton sentenced Baroni to 24 months in prison and Kelly to 19 months in prison.
“As we said in our motion to the Court, although David Wildstein was the architect of this criminal scheme and a force behind its cover-up, he accepted responsibility for his actions and admitted his guilt,” Acting U.S. Attorney William E. Fitzpatrick said. “His timely, complete and truthful cooperation was extraordinary and essential to the successful prosecution of Mr. Baroni and Ms. Kelly. The law requires the government and the court to take the nature and extent of Mr. Wildstein’s cooperation into account in fashioning an appropriate sentence.”
“This investigation has conclusively established that the conspirators, William Baroni, Bridget Anne Kelly, and David Wildstein misused their government positions to harm the very members of the public they were hired to serve,” Inspector General Michael Nestor of the Port Authority, Office of Inspector General, said. “By doing so, they put the interests of a few before the greater good of the public. They engaged in a cover-up of their scheme, and caused false information to be distributed to Port Authority employees, other government officials, and the public. The Port Authority Office of Inspector General and its professional staff continue to fulfill its mission of rooting out corruption, at no matter what level it may exist within the Port Authority. We commend and thank our law enforcement partners for their cooperative effort and tireless work.”
“Combating public corruption is one of the FBI’s top criminal investigative priorities. It strikes not only at the heart of good government, but it also jeopardizes the security of our communities and our nation,” FBI Special Agent in Charge Timothy Gallagher, Newark Division, said. “Public corruption erodes public confidence and diminishes the strength of our democracy. Today’s sentencing highlights our commitment to aggressively pursue those who engage in unethical and corrupt practices.”
According to documents filed in this case and statements made in court:
In August 2013, after Kelly confirmed that Fort Lee Mayor Mark Sokolich would not be endorsing Gov. Christie for re-election in November 2013, Baroni, Kelly, and Wildstein decided to punish the mayor by deliberately causing significant traffic problems in Fort Lee under the false pretense of a traffic study.
From the morning of Sept. 9, 2013, to Sept. 13, 2013, the conspirators caused the local access lanes to be reduced so that only one toll booth, instead of the usual three, was accessible to the approach to the bridge for local traffic traveling through Fort Lee. To maximize the congestion and the punitive impact on Mayor Sokolich, the conspirators caused these lane and toll booth reductions to start on the first day of the school year without any advance notice to Mayor Sokolich, the Fort Lee chief of police or borough residents. The lane and toll booth reductions resulted in significant traffic in Fort Lee, for motorists intending to access the George Washington Bridge from local lanes, and for residents, whose streets were choked with traffic.
The conspirators agreed to disregard any inquiries from Mayor Sokolich and other Fort Lee officials about the lane and toll booth reductions. They purposely ignored communications from Mayor Sokolich, including his pleas for help, requests for information, and repeated warnings about the increased risks to public safety.
The conspirators concocted and promoted a sham story that the lane reductions were for a traffic study. They created and advanced this cover story so they could use Port Authority property, including the time and services of unwitting Port Authority personnel and other resources, to implement the lane and toll booth reductions and conceal their true punitive purpose.
In addition to probation, Judge Wigenton sentenced Wildstein to 500 hours of community service, ordered restitution of $14,314 and fined him $10,000.
U.S. Attorney Fitzpatrick credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr., Vikas Khanna, David W. Feder and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division.
Brother and Sister Charged with Phony Invoice SchemeRead the Press Release
NEWARK, N.J. – A brother and sister from New Jersey have been charged with running a multi-million-dollar fraudulent invoice scheme, Acting U.S. Attorney William E. Fitzpatrick announced today.
Shevandra Verasawmi, 37, of Matawan, New Jersey, and Vishallie Verasawmi, 36, of Green Brook, New Jersey, are charged by indictment with one count of conspiracy to commit mail fraud and three counts of mail fraud.
Shevandra Verasawmi was arrested July 11, 2017, and appeared that afternoon before U.S. Magistrate Judge David Cayer in Charlotte, North Carolina, federal court. Vishallie Verasawmi was arrested this morning and appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. Both defendants, who are out on bail, will be arraigned before U.S. District Judge Freda L. Wolfson in Trenton federal court on July 19, 2017.
According to the indictment:
From April 2016 through August 2016, Shevandra and Vishallie Verasawmi defrauded an entity identified in the indictment as “Victim Company 1” into paying shell companies that were incorporated by Shevandra Verasawmi. Despite the fact that the shell companies never had contracts for goods or services with Victim Company 1, Vishallie Verasawmi used her position as an employee of Victim Company 1 to add the shell companies to Victim Company 1’s accounts payable system.
Shevandra and Vishallie Verasawmi then submitted dozens of fraudulent invoices to Victim Company 1 and ultimately deposited the fraud proceeds into bank accounts they controlled. In total, Shevandra and Vishallie Verasawmi attempted to divert millions of dollars belonging to Victim Company 1 and spent the proceeds on personal expenses, including luxury cars and credit card payments.
The indictment seeks forfeiture of Shevandra and Vishallie Verasawmi’ s alleged proceeds from the scheme, including $1,066,829.57 and a 2016 BMW 750Li xDrive sedan.
The mail fraud conspiracy and mail fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
The investigation was led by criminal investigators with the U.S. Attorney’s Office in Newark. The government is represented by Assistant U.S. Attorneys Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Alex Weinberg of the office’s Asset Forfeiture and Money Laundering Unit.
Acting U.S. Attorney Fitzpatrick thanked postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and the U.S. Marshals for their assistance.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Member of Violent Grape Street Crips Gang Admits Witness Intimidation as Part of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A member of the New Jersey set of the Grape Street Crips today admitted his role in a racketeering conspiracy that involved using other gang members to intimidate a witness during a state criminal trial, as well as conspiracies to distribute heroin and crack-cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Ahmed Singleton, a/k/a “Gangsta-Moo,” a/k/a “Gangsta,” a/k/a “Mooshie,” 28, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to three counts in the sixth superseding indictment charging him with RICO conspiracy and separate conspiracies to distribute one kilogram of heroin and 280 grams or more of crack-cocaine.
According to documents filed in this case and statements made in court:
As part of the racketeering conspiracy, Singleton admitted that he used fellow members of the N.J. Grape Street Crips to intimidate a witness against him by having those gang members sitting in the gallery of the courtroom as the witness took the stand. Singleton was facing criminal charges brought by the Essex County Prosecutor’s Office for aggravated assault, possession of a weapon for an unlawful purpose, and unlawful possession of a firearm for a shooting that occurred in April 2013. As a result of Singleton’s effort, the witness refused to testify against him and the charges were dismissed.
Afterwards, Singleton was intercepted over a wiretap bragging to a fellow gang-member: “Who you know cause a ruckus on these motherfuckin streets, come home, do whatever the fuck they want, and still be out here son?”
Singleton also admitted to participating in conspiracies to distribute one kilogram or more of heroin and 280 grams or more of crack-cocaine.
The N.J. Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the area of 6th Avenue and North 5th Street and public-housing complexes at Pennington Court, Oscar Miles, the Millard Terrell Homes, the John W. Hyatt homes and the former James Baxter Terrace complex.
Under the terms of the plea agreement, Singleton will receive a sentence of 19 years in prison and five years of supervised release. Sentencing is scheduled for Oct. 12, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the Office’s Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense Counsel: Alyssa Cimino Esq., Fairfield, New Jersey
Grape Street Crips Associate Sentenced to 20 Years in Prison for Committing Murder During Home-Invasion RobberyRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 240 months in prison for his involvement in an August 2015 home invasion that left one person dead, Acting U.S. Attorney William E. Fitzpatrick announced.
Jahad Lemons, a/k/a “JBird,” 26, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an indictment charging him with one count of murder during a crime of violence, one count of Hobbs Act robbery conspiracy, one count of Hobbs Act robbery, and one count of using a firearm during a crime of violence. Judge Arleo imposed the sentence today in Newark federal court.
According to the indictment:
On Aug. 18, 2015, Lemons, his co-defendants, Aaron Terrell, a/k/a “Push,” 26, and Papayaw Mack, a/k/a “GY,” 26, and two other individuals – referred to in the indictment as “CC-1” and “CC-2” – allegedly used firearms to rob the apartment of an individual referred to in the indictment as “Victim-1” at a residential building in Newark. They targeted Victim-1 because they believed Victim-1was a heroin trafficker whose residence contained narcotics and related proceeds.
Lemons, Terrell, Mack, CC-1, and CC-2 allegedly surrounded Victim-1, forced him into his apartment, and then proceeded to rob at gunpoint Victim-1 – as well as Victim-2 and Victim-3, who were already inside the apartment – of cash and personal effects. Terrell and CC-2 allegedly discharged their firearms, which killed Victim-1 and seriously wounded Victim-2.
All three men were originally charged by the Essex County Prosecutor’s Office with murder and robbery. On Aug. 26, 2015, Terrell was arrested by the Newark Police Department, while Lemons was arrested in Georgia on Oct. 26, 2015. Mack remains at large. Terrell is also facing separate federal charges in a sixth superseding indictment for his participation in a racketeering conspiracy related to the New Jersey set of the Grape Street Crips, a violent street gang operating in Newark.
In addition to the prison term, Judge Arleo sentenced Lemons to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, and police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, for their assistance.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the indictment are merely accusations, and Terrell and Mack are presumed innocent unless and until proven guilty.
Four More Members of Atm Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Plead GuiltyRead the Press Release
NEWARK, N.J. – Four members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Acting Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.
Marcel Peckham, 43, of Little Neck, New York; Catalin Mihai Dragomir, 33, of Glendale, New York; Eduard Vasilica Ticu, 32, of Glendale; and Silvester Florentin Papp, 25, of Ridgewood, New York, pleaded guilty before U.S. District Judge Esther Salas to separate informations charging them each with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Peckham, Dragomir, Ticu, Papp, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Peckham admitted providing counterfeit ATM cards to other conspirators, knowing that they were going to use them to withdraw cash from compromised bank accounts at ATMs in New Jersey. Dragomir, Ticu, and Papp each admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for all four defendents is set for Oct. 23, 2017.
Joel Abel Garcia, Victor A. Hanganu, and Radu Bogdan Marin also pleaded guilty to their roles in the scheme and await sentencing. To date, seven of the 13 defendants charged in this matter have been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Defense counsel:
Peckham: Howard B. Brownstein Esq., Union City, New Jersey
Dragomir: Timothy Michael Donohue Esq., West Orange, New Jersey
Ticu: Tejinder Bains Esq., Forest Hills, New York
Papp: Stacy A. Biancamano Esq., Cranford, New Jersey
Bergen County, New Jersey, Man Sentenced to 162 Months in Prison for Conspiracy to Distribute More Than Three Kilograms of Heroin in PatersonRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 162 months in prison for purchasing more than three kilograms of heroin from a source in Bronx, New York, and re-selling it to drug dealers in Paterson, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Edwin Lopez, a/k/a “E,” a/k/a “Pan,” 31, of Elmwood Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin.
According to the documents filed in this case and statements made in court:
From June 2015 to May 2016, Lopez and others allegedly participated in a drug trafficking organization that amassed wholesale quantities of heroin at multiple locations around Bronx and used couriers to deliver large quantities of heroin to mid-level drug dealers in Paterson. The heroin was either sold in the Paterson area or redistributed to street-level drug dealers in suburban areas, including Morris County, New Jersey, and Rockland County, New York.
Lopez admitted he participated in this conspiracy from June 2015 until his arrest on April 19, 2016. He admitted that at the time of his arrest, he was giving a $13,500 payment to one of Goris-Castellano’s couriers in exchange for the 150 bricks of heroin.
In addition to the prison term, Judge Wigenton sentenced Lopez to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.
This case was brought under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Union County Man Charged with Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Springfield, New Jersey, man who was previously convicted of possessing child pornography was arrested this morning on the same charge, Acting U.S. Attorney William E. Fitzpatrick announced.
Sam Cynamon, 66, is charged by criminal complaint with one count of possession of child pornography. He appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court was released on $100,000 unsecured bond.
According to the complaint:
On Jan. 10, 2017, Cynamon used an Internet based peer-to-peer network to request a webcam video file of a prepubescent girl engaging in sexually explicit conduct. On July 10, 2017, law enforcement obtained multiple computers and electronic storage media belonging to Cynamon from his residence. The computers and electronic storage media contained the peer-to-peer network software and multiple images and videos of child pornography, including images of child sexual abuse.
Cynamon previously pleaded guilty in New Jersey federal court to possession of child pornography in March 2005 and was sentenced to 27 months in prison.
As a result of Cynamon’s prior conviction, the charge of possession of child pornography carries a mandatory minimum potential penalty of 10 years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian A. Michael, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Alan Zegas Esq., Chatham, New Jersey
Senior Member of Drug Trafficking Organization Admits Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A senior member of a large-scale drug trafficking organization today admitted distributing heroin in Ocean and Monmouth Counties and elsewhere in New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Robert Britt, a/k/a “True,” 45, of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an indictment charging him with conspiracy to distribute heroin.
Between March and May 2014, 21 other individuals, including numerous members of the drug trafficking organization, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after two of its leading members, Britt and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” As of today’s plea, all 22 defendants have been convicted.
According to documents filed in the case and statements made in court:
Between July 2010 and March 2014, Britt conspired with others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. During his plea hearing, Britt admitted that he distributed between one and three kilograms of heroin in furtherance of the conspiracy and that he served as a manager or supervisor of the conspiracy.
Under the terms of the plea agreement, if accepted by the court, Britt will receive a sentence of 12 years in prison. Sentencing is scheduled for Nov. 2, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation.
The government is represented by Assistant U.S. Attorneys Nicholas Grippo and Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
New York Man Admits Robbing Bergen County, New Jersey, BankRead the Press Release
NEWARK, N.J. – A New York man today admitted robbing a bank in Fort Lee, New Jersey, in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
Issac Nesbit, 30, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of bank robbery.
According to the documents filed in this case and statements made in court, Nesbit admitted that Jan. 20, 2017, he robbed a Bank of New Jersey in Fort Lee. Nesbit admitted that he handed a teller a hand-written note demanding cash and threatening to shoot everyone in the bank if the teller did not comply.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 17, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Burlington County, New Jersey, Man Sentenced to 54 Months in Prison for Wire Fraud, Money LaunderingRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man has been sentenced to 54 months in prison for his role in a mortgage fraud scheme that caused $2.7 million in losses, Acting U.S. Attorney William E. Fitzpatrick announced today.
Pierre Chainey, 42, of Tabernacle, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to one count of conspiracy to commit wire fraud and one count of money laundering. Judge Hillman imposed the sentence on July 7, 2017, in Camden federal court.
According to documents filed in this case and statements made in court:
In November 2005, Chainey established Universal Lending Solutions LLC, a mortgage brokerage company in Northfield, New Jersey, and served as chief executive office of the company until 2008. He was also a loan officer for the company.
From November 2005 through at least January 2008, he conspired with others to profit from the sale and purchase of properties in New Jersey by obtaining mortgage loans for unqualified borrowers using fraudulent loan applications, HUD-1 Settlement Statements and other documents.
In addition to the prison term, Judge Hillman sentenced Chainey to three years of supervised release; restitution will be determined at a later date.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Newark.
Third Circuit Affirms Conviction of Rabbis in Kidnapping CaseRead the Press Release
NEWARK, N.J. – The U.S. Court of Appeals for the Third Circuit today affirmed the convictions of three Orthodox rabbis who were convicted at trial of conspiring to kidnap Orthodox Jewish husbands who refused to grant their wives permission to divorce, Acting U.S. Attorney William E. Fitzpatrick announced.
In a precedential opinion in the consolidated appeals of Orthodox rabbis Binyamin Stimler, Jay Goldstein, and Mendel Epstein, the appeals court affirmed the convictions in all respects.
The goal of the conspiracy was to coerce the recalcitrant husbands to grant a “get” – permission to obtain a religious divorce – to their wives. On appeal, the defendants raised numerous claims, including a constitutional challenge to a federal statute and a claim that the prosecution violated the Religious Freedom Restoration Act.
The government was represented by Assistant U.S. Attorneys Norman Gross and Glenn J. Moramarco of the U.S. Attorney’s Office Appeals Division in Camden.
Stimler, Goldstein & Epstein Verdict Release
Stimler & Epstein Sentencing Release
Goldstein Sentencing Release
Paterson Man Charged with Robbing Two Passaic County BanksRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man appeared in federal court today to face charges that he recently robbed a TD Bank in Paterson, New Jersey, and an Investors Bank in Clifton, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
James M. Chestnut, 62, was arrested yesterday and charged by complaint with two counts of bank robbery. He appeared this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was detained.
According to the complaint:
On June 30, 2017, Chestnut allegedly entered a TD Bank in Paterson and handed a teller a note stating “Put 100s and 50s in the envelope. No dye pack.”
On July 5, 2017, Chestnut allegedly entered an Investors Bank in Clifton and approached a teller, this time while brandishing a firearm. He told the teller to “Open your drawer. Give me your money. All the 100s. Don’t call the cops or I’ll shoot you.”
Chestnut has two prior federal bank robbery convictions from 1996 and 2004.
The armed bank robbery count carries a maximum potential penalty of 25 years in prison. The unarmed bank robbery count carries a maximum potential penalty of 20 years in prison. Both counts carry a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, New Jersey, with the investigation. He also thanked the Paterson Police Department, under the direction of Director Jerry Speziale; the Saddle Brook Police Department, under the direction of Chief Robert Kugler; the Clifton Police Department, under the direction of Chief Mark Centurione; and the Passaic Police Department, under the direction of Chief Luis A. Guzman, for their assistance.
In addition, the investigation was aided by the FBI Violent Crime Task Force, which is comprised of law enforcement personnel from the Bergen County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Roxbury Police Department, the Paterson Police Department, and the N.J. State Police.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark